Mindspace Business Parks REIT

- Mindspace REIT raised INR 5.5 billion through India’s first REIT level Green Bond issuance with a 3-year maturity at a fixed coupon of ~8% (Page 5). - During FY23, they raised a total of INR 15.4 billion through bonds across 3- and 5-year tenures (Page 5). - Undrawn committed credit lines of approximately INR 13.7 billion from financial institutions remain available (Page 6). - Most of the incremental debt raised is attributable to CAPEX spend, with around INR 700-800 crore of debt added in FY23 for CAPEX (Page 11). - No new equity fundraising was explicitly mentioned for the near future in the transcript. - The robust balance sheet and low LTV (~17.9%) provide flexibility to pursue organic and inorganic growth opportunities (Page 6).

- Mindspace REIT has ongoing and planned CAPEX primarily focused on development and expansion of existing parks. - Incremental debt added (~Rs. 700-800 crores in FY23) largely attributable to CAPEX spend, which will continue in coming years. - No construction finance debt; all debt is in the form of LRD or NCDs at the REIT level. - Some under-construction buildings are being leased prior to completion to bring them in earlier (e.g., Pune, Hyderabad). - Potential to build up to 2 million sq ft in Airoli park, though financial modeling currently assumes ~800,000 sq ft. - Denotification efforts (e.g., a building of approx. 400,000 sq ft) to convert SEZ spaces to non-SEZ for leasing flexibility. - Sponsor side undertaking new developments in key micro-markets to add to REIT’s growth pipeline. - No specific quantified guidance on CAPEX amounts or future strategic acquisitions mentioned.

- FY23 Revenue from Operations grew 16.6% YoY to approx. INR 20.7 billion; NOI grew 13.2% YoY to INR 16.9 billion, indicating strong underlying growth. - FY24 expected healthy NOI growth due to leasing in FY23 and newly completed areas contributing rental income, though exact percentage not quantified. - Committed occupancy increased to ~89% in FY23, with key parks at or near 100%, supporting future rental income and revenue stability. - Incremental developments and redevelopment projects planned in Pune and Mindspace Madhapur, suggesting volume and asset expansion. - Market rents remain stable or firming in certain markets, supporting revenue growth potential. - Expansion driven by demand from 3rd party service providers, tech companies working on emerging tech, and continued Chennai, Pune, Hyderabad growth. - Overall expectations are positive with cautious optimism given macroeconomic conditions and potential global recession impacts.

- FY23 saw a 16.6% YoY growth in revenue from operations and a 13.2% YoY growth in Net Operating Income (NOI). - For FY24, NOI is expected to see healthy growth driven by leasing executed in FY23 and completion of new areas. - Exact percentage increase in NOI for FY24 is not quantified but directional growth is anticipated. - Interest costs are expected to rise marginally (~20 bps) due to transmission of interest rate hikes and increased variable cost debt. - Stabilization of interest rates in FY24 could support profit growth. - Distribution yield remains attractive at an annualized 6.9% on issue price. - Market rentals remain stable or firming in key macro-markets, supporting revenue growth. - New green financing and expansion in tenant base indicate strong future operational capacity. Overall, modest earnings growth with some margin pressure from interest cost increase is expected in FY24.

The document does not explicitly mention the current or expected orderbook or pending orders for Mindspace Business Parks REIT. However, some relevant points related to leasing and demand outlook can be summarized: - New leasing of approximately 0.6 million sq ft occurred in Q4 FY23 (0.5 million sq ft new/vacant area, 0.1 million sq ft re-leasing). - Continued demand driven primarily by third-party service providers, especially in tech and financial services sectors. - Large RFPs are expected to be subdued for the next 2-4 quarters, with steady demand for smaller lease sizes (50,000 to 150,000 sq ft). - Ongoing churn is viewed as an opportunity for mark-to-market lease renewals and releases. - Expansion mainly focused on non-SEZ supply, with denotification efforts on certain buildings proceeding. - Overall committed occupancy rose to ~89%, with incremental leasing adding to NOI growth prospects in FY24. No precise orderbook or pending order values are disclosed.